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What is uninsured and underinsured motorists coverage used for?

On Behalf of | Oct 4, 2018 | UM/UIM Coverage |

By law drivers in Minnesota are required to carry auto insurance that contains liability coverage, personal injury protection (PIP), uninsured motorist coverage and uninsured motorist coverage. Optional types of coverage include collision coverage and comprehensive coverage. Today we are going to focus on uninsured motorist coverage and underinsured motorist coverage. What are the differences between these two types of auto insurance coverage?

Underinsured coverage comes into play when a person is injured in a car accident and the responsible party does not have enough liability coverage to cover the victim’s medical expenses. Underinsured coverage pays, within stated limits, for policy-covered medical expenses. Underinsured motorist benefits can be used alongside PIP benefits.

Uninsured coverage comes into play when a person is injured in a car accident, but the responsible party does not have auto insurance. Uninsured coverage will pay for the victim’s medical costs once he or she has used up his or her PIP benefits. PIP benefits are no-fault benefits, meaning that they can be collected no matter which party in the motor vehicle accident is at fault.

So, the main difference between the uninsured and uninsured motorist coverage is whether the party responsible for the crash has sufficient insurance coverage, or even any insurance coverage at all. Despite it being the law, some drivers in Minnesota do not carry the required automobile insurance. When this happens, and that driver causes a car crash, the victims of that crash may rely on their own underinsured or uninsured motorist coverage to help pay for the medical expenses they suffered in the collision.